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JAMIE PESOTINE/Staff Photographer
George Leitner Jr., owner of The Beer Store, works at the Hazleton beer distributor Saturday.

Area beer distributors say a Republican plan to privatize the sale of wine and liquor could put them out of business.

In Pennsylvania, customers now can only buy cases of beer at distributors. They can buy a six-pack or two at bars and certain grocery stores and restaurants.

House Bill 790 would change that.

The bill, which passed the House on Thursday and was sent to the Senate, would allow beer distributors to sell six-packs and 12-packs of beer with a special permit. Distributors also would get first crack at buying 1,200 licenses to sell wine and spirits.

If the bill passes the Senate, however, small beer distributors said they would be forced to compete with grocery stores and other retailers that also could buy licenses to sell wine and up to a case of beer.

Jack Yarashas, who co-owns Carbon Beverage in Weatherly with his brother, Ron Yarashas, said he doesn't think the plan was thought through clearly.

"I don't think the politicians understand how the system is set up right now," he said.

Jack Yarashas would like to add wine to his offerings but doesn't think his business would be able to compete with pharmacies and big businesses.

"They're selling all kinds of other items - not just beer and wine - so they would be able to reduce the cost," he said, noting that stores would continue to receive profit from sales of other items. "(Distributors) only sell alcohol."

He does agree that distributors should be able to sell any quantity of beer.

"I bought a distributorship to sell beer, and I should be able to sell beer right down to a can if I wanted to," he said.

George L. Leitner, owner of The Beer Store in Hazleton, said it was too soon to say whether he supports the plan.

"I don't know how it would affect us," he said.

Leitner said The Beer Store has been receiving information about the plan from beer distributor organizations and that his business likely would go with the status quo.

The Malt Beverage Distributors Association of Pennsylvania is pushing for a negative vote on the bill.

"If you have beer, wine and liquor in a grocery store and you go the store every week, that eventually will push us out of the market. There won't be a need to go to the beer distributor. That's our concern," said Mark Tanczos, president of the association and a second-generation beer distributor in Bethlehem. "We don't believe it is in the best interest to have alcohol sold anywhere except alcohol specialty outlets like a beer distributor or a specialized alcohol store."

State Sen. John Yudichak, D-14, also is concerned that small family-owned beer distributors will not be able to compete with big retailers and their budgets.

As Gov. Tom Corbett pushes for privatization, Yudichak pointed out there already is a healthy private sector that sells liquor in taverns, delis and pizza shops. Yudichak said he is concerned about opening up the market to big retailers and that it will lead to beer distributors closing.

Beer distributors throughout Pennsylvania employ more than 36,000 workers, according to the Malt Beverage Distributors Association.

"If privatization is a job killer, I'm going to have a hard time even considering it," Yudichak said.

Anheuser-Busch and MillerCoors, the two giants of the American beer market, have put their names on a letter objecting to the bill.

Under the bill, which passed the House on Thursday by a 105-90 vote after seven hours of debate, beer distributors would pay fees up to $37,500 to sell wine and up to $60,000 for spirits. Public fees would range from $97,500 to $187,500 for wine and $142,500 to $262,500 for spirits. Licenses must be renewed every two years at a cost of $1,000.

Those licensed as wine and spirits dealers can sell between 9 a.m. and 11 p.m. every day except Sunday. A Sunday sales permit would cost $1,000 annually to sell that day from 9 a.m. to 9 p.m.

Restaurants, hotels and other eating establishments could obtain permits to sell up to 24 bottles of beer in packages of no more than a 12-pack. Restaurants also could purchase permits to sell up to six bottles of wine for diners to take home.

As beer distributors opposed the bill, the Pennsylvania Chamber of Business and Industry applauded state House lawmakers for advancing a plan to gradually get state government out of the retail and wholesale liquor business.

"The Pennsylvania Chamber believes, as do many Pennsylvanians, that the sale of alcohol is not a core function of state government and would be better handled by the private sector," said Gene Barr, the organization's president.

dallabaugh@citizensvoice.com

jwhalen@standardspeaker.com

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